International Trade Today is providing readers with some of the top stories for Jan. 22-25 in case they were missed.
The perspectives from Congress, Canada and Mexico -- and a former acting U.S. trade representative -- diverge wildly on how much can be changed in the new NAFTA to garner votes for approval and how difficult it will be to get it passed in 2019. Miriam Sapiro, who was acting USTR and is now with SVC Public Affairs, used the term “lovely miracle” to describe how she’d feel if it passed this year. Rep. Kevin Brady, R-Texas, the ranking member on the House Ways and Means Committee, said it's clear that the metals tariffs on Canada and Mexico -- without quotas -- have to have a date certain to come off before Congress members are really about to start “to count the noses.”
The Convention on International Trade in Endangered Species will consider changes to restrictions on trade in rosewood, ipe and padouk at its next Conference of the Parties at the end of May, according to a list of proposals set for consideration at the meeting. One amendment proposed by Canada and the European Union would replace the current exemption for non-commercial shipments of rosewood with a specific exemption for musical instruments and a de minimis level for rosewood in finished goods, whether or not commercial in nature.
EBay praised a bipartisan group of Congress members who want the U.S. trade representative to stop talking about "reciprocal" de minimis levels. There is a footnote to that effect in the new NAFTA (see 1810190043) that has drawn opposition from trade groups in the past (see 1811060010). But despite that, the USTR included the same language in negotiating priorities for both Japan and the European Union. The EU is on a path to have no de minimis level at all for tax purposes. EBay is critical of the de minimis increases USTR convinced Mexico and Canada to agree to, because there are lower tax de minimis levels than the duty de minimis of $117. The company called it "unnecessarily complicated."
Rep. Earl Blumenauer, an Oregon progressive who supported fast track authority in 2015, will lead the House Ways and Means Committee's Trade Subcommittee, winning the seat instead of Rep. Bill Pascrell, the New Jersey Democrat who served as ranking member when the Democrats were in the minority. Blumenauer only chose to assert his seniority after his idea of an infrastructure financing committee didn't come to pass (see 1811140049). Blumenauer released a statement after his selection Jan. 16 that said: "We have an outstanding subcommittee primed to make progress and fight for Democratic values like meaningful, effective trade enforcement, access to affordable medicines, and strong environmental protections at home and abroad."
The U.S. trade representative will negotiate with the European Union to seek to "secure comprehensive market access for U.S. agricultural goods in the EU by reducing or eliminating tariffs," and eliminate "non-tariff barriers that discriminate against U.S. agricultural goods," the Office of the U.S. Trade Representative said.
Cecilia Malmstrom, the European Union's trade commissioner, told an audience at the Atlantic Council Jan. 10 that if U.S. tariffs on imported autos were to be implemented, the EU would not accept a quota system as Canada and Mexico have done. Malmstrom has been in Washington meeting with U.S. Trade Representative Robert Lighthizer this week on both World Trade Organization reform and the bilateral trade relationship.
International Trade Today is providing readers with some of the top stories for Dec. 31 - Jan. 4 in case they were missed.
CBP will not be penalizing carriers that are unable to file Section 321 manifests for truck shipments due to "CBP system limitations," the agency said in a Dec. 31 CSMS message. CBP announced plans in November to require advance electronic manifest filing for all commercial trucks with Section 321 shipments starting Jan. 1 (see 1811050010). Technical issues within ACE limit "number of Section 321 shipments that can be manifested to 5,000 or less when transported by truck," CBP said. A correction will be in place by April 1, but "absent the technical correction within ACE, carriers transporting more than 5,000 shipments of Section 321 merchandise are unable to file an electronic manifest," CBP said. CBP may still pursue enforcement action "for truck carriers with 5,000 or less shipments if the manifest was not submitted electronically," it said.
The Office of the U.S. Trade Representative copied most of the NAFTA priorities' language on customs and trade facilitation for its U.S.-Japan negotiating priorities, with one major exception. The USTR raised the idea of matching de minimis value thresholds as part of a trade deal. Specifically, it wrote that an agreement should "provide for simplified customs procedures for low-value goods and a more reciprocal de minimis shipment value."